East African Portland Cement (EAPC) shares surged nearly six percent last week, closing at Ksh 59.75 and ranking among the top gainers at the Nairobi Securities Exchange (NSE).
Thank you for reading this post, don't forget to subscribe!The rally came despite mounting controversy over a proposed 29.2 percent takeover by Tanzanian billionaire-linked investors.
The Capital Markets Authority (CMA) recently cleared the sale of Holcim Limited’s stake in EAPC to Kalahari Cement Limited, a Kenyan-registered investment firm connected to Tanzania’s Amsons Group.
The transaction, valued at Ksh 718.7 million, was priced at Ksh 27.30 per share — far below current market prices.
Lawmakers Question CMA Over Undervalued Deal
The deal has sparked outrage from Members of Parliament, who have accused CMA of approving an undervalued and opaque sale.
Lawmakers questioned why the regulator failed to consult the Attorney General or invite public input on the transaction, calling it a potential sellout of a strategic national asset.
Some legislators also warned that the takeover could lead to market domination, noting that the same Tanzanian investors recently acquired Bamburi Cement.
“This is how monopolies are born — through quiet approvals and little oversight,” one MP said during a parliamentary debate.
Market Responds as Speculation Grows
Even as the political storm brewed, investors continued snapping up EAPC shares amid takeover speculation. The cement manufacturer, majority-owned by the Kenyan government, remains one of the key suppliers to public infrastructure projects.
Overall, trading at the NSE was mixed. The NASI, NSE 25, and NSE 20 indices fell by 3.57%, 1.86%, and 2.07% respectively, while equity turnover spiked by 209.9% as investors chased short-term gains.
Wider Market Trends and Policy Signals
The Central Bank of Kenya (CBK) trimmed its base lending rate by 25 basis points to 9.25%, easing borrowing costs.
Treasury bill subscriptions rose to 106.9%, signaling renewed appetite for short-term government paper. Meanwhile, Kenya’s Eurobond yields climbed slightly as officials prepared for talks with the IMF in Washington, D.C.
Despite the uproar, analysts say the EAPC rally shows investors’ optimism that fresh ownership could revive the struggling cement maker — even as political scrutiny deepens.
